Annual Report EL 25688 and EL 27143 Mountain Creek Group Reporting GR322-13 for the period 20 August 2013 to 19 August 2014

Abstract

The project is located approximately 40 kilometres south of Ngukurr in the gulf country of the Northern Territory. The project group comprises EL 25688 and EL27143, and covers an area of 715.37 square kilometres. EL 25688 was originally granted to Tianda Resources (Australia) Pty Ltd (Tianda) for six years on 20/8/2007. Tianda entered into a farm-in agreement with Western Desert Resources Ltd (Receivers and Managers appointed 5th September 2014) ('WDR') on 1/6/2010. During the second half of 2013, EL25688 was transferred to WDR in full. EL 27143 was granted to WDR Iron Ore Pty Ltd, a wholly owned subsidiary of WDR, on 24th August 2009 for a period of six years. The tenement, at time of grant covered an area of 1,027 sq km (320 sub blocks). 134 blocks for 409.6 sq km were relinquished in August 2011. Both tenements are prospective for sediment hosted iron ore deposits. Some base metal potential for McArthur River style mineralisation also exists in the northern portion of EL 27143. The project area is underlain by the Maiwok Subgroup of the Roper Group of the McArthur Basin. The Roper Group of sediments consists of two sub groups, the Collara Subgroup and the Maiwok Subgroup. Sedimentary oolitic ironstone is present at several intervals within the upper part of the Roper Group, and best developed within the Sherwin Formation in the Maiwok Subgroup. Oolitic ironstone within the Sherwin Formation is the target of exploration for iron ore within the project area. Drilling during the field season, exploration consisted of 144 reverse circulation drillholes and 3 diamond drillholes on EL 25688. These holes ranged from a completion depth of 3m to 112m and continued to intersect narrow high grade mineralisation within the Sherwin Formation at the Pumbaa target. Exploration on the eastern side of the outcropping iron formation only intersected low grade iron mineralisation. The drilling campaign was cut short by the early and severe wet season.